FACTBOX: Non-G7 European countries economic outlook

COPENHAGEN (Reuters) - The Organisation for Economic Cooperation and Development on Tuesday forecast a fall in economic activity in smaller Western European nations over the next six months followed by a gradual recovery, with inflation easing considerably.

The following is a synopsis of the OECD's views of these economies in its twice-yearly economic outlook:

AUSTRIA

Growth has declined and the economy is set to contract in 2009 before recovering in 2010. Inflation is projected to ease as energy and food prices fall, economic slack increases and import prices decelerate.

The recent fiscal support measures will help limit the extent of the slowdown. Wage moderation will be important to avoid loss of competitiveness and second-round inflation pressures.

BELGIUM

Growth may remain below potential well into 2010, before rebounding on the back of easier monetary conditions, renewed growth in real incomes and a recovery in world trade.

As a result, unemployment will increase. Headline inflation should decline with the fall in energy and food prices, although core inflation should show more persistence.

DENMARK

After years of strong expansion, the construction boom is now over and falling house prices have put an end to debt-financed consumption growth.

Exports are likely to remain weak during 2009, leading businesses to cut back investment. Denmark enters the slowdown with severe capacity pressures and wages rising much faster than warranted by productivity growth. There is thus little need for a fiscal demand stimulus, especially since monetary conditions are set to ease along with those of the euro area.

FINLAND

Economic activity has slowed substantially due to a decline in investment. Output growth is projected to be subdued in 2009 before recovering during 2010. Unemployment is likely to drift up during 2009, but should stabilize in 2010.

Lower commodity prices and growing slack in the economy should bring down inflation from the current high rate.

The OECD said the government should address labor market mismatches to ensure further declines in structural unemployment.

GREECE